Based on my experience of running properties, even if the build were to cost you as much as $600k but you could generate $125k/year, you'd be very happy with that investment. 

Buildium streamlines the process by generating screening reports for us.

Your specific variable expense assumptions are wrong, BUT you stumbled into them being correct overall.Also, you are approaching this correctly - entering in the numbers to generate a purchase price that meets your metrics:)

I had no money to put down on any properties, so I learned (a lot) and put in a lot of hard work and effort to get some properties under contract.Initially, I had no clue what I was doing, but I had the help of some people (and I appreciated that)I made mistakes that cost me around $30k (lost a deal due to my ignorance regarding title and escrow)The good news with wholesaling is that it doesn't take a lot of capital upfront, and you can start talking to sellers and learn about the industry in general.The other good news is that you can without a doubt generate revenue quickly if you do things correctly (having a good TC / title / escrow connection that keeps deals moving on the backend)That said, there are a few points that I've come to live by:1.

If I choose the rental, then all income generated will be taxable income moving forward, because none will be off-set by the interest I could deduct.  

Early on, rents would remain market-aligned to ensure the portfolio generates the income needed to cover expenses, pay investors, and reinvest in expansion.

Are you still generating positive wealth when you count equity paydown by the tenants? 

Losing 85% on a single REIT would’ve been devastating if you were all-in, but spreading out across 10 investments turned the overall outcome positive because of the winners.Here’s a few extra key tips to avoid big losses in passive investments:Focus on cash flow: Invest in assets that generate consistent income.

You also have the option to use non-recourse loans to leverage your real estate purchases, though this may trigger Unrelated Business Income Tax (UBIT) on the income generated.

If not, understand the risk of taking equity to generate more equity based off your ROI.